Which of the following is not implied by the quantity equation?
a. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in nominal output.
b. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in the price level.
c. With constant money supply and output, an increase in velocity creates an increase in the price level.
d. With constant money supply and velocity, an increase in output creates a proportional increase in the price level.
d
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Unemployment benefits in western Europe are more generous than in the United States. As a result, ________ in the United States
A) frictional unemployment is higher B) frictional unemployment is lower C) cyclical unemployment is higher D) structural unemployment is higher E) avoidable unemployment is lower
As long as an additional worker hired by a firm produces
A) more output than the real wage rate, the firm will hire that worker. B) more output than the real wage rate, the firm will not hire that worker. C) less output than the real wage rate, the firm will hire that worker. D) some output, the firm will hire that worker. E) more output than the nominal wage rate, the firm will hire that worker.
The general form of the per-person production function used in Chapter 10 is
A) (Y/N) = A - f(N/K). B) (Y/N) = A + f(N/K). C) (Y/N) = A/f(K/N). D) (Y/N) = Af(K/N).
Refer to Figure 21-26. Rhonda experiences an increase in her hourly wage. Her optimal choice point moves from A to B. For Rhonda,
a. leisure is a normal good. b. her labor supply curve is backward bending. c. both a and c are correct. d. her labor supply curve is upward sloping.